1. What is this?
To help the U.S. government fight financial crime, federal regulation requires PayServices Bank to obtain, verify, and record information about the beneficial owners of legal-entity customers. This requirement, known as the FinCEN Customer Due Diligence ("CDD") Rule, helps law enforcement investigate and prosecute crimes including terrorist financing, money laundering, tax evasion, corruption, and fraud.
This disclosure summarizes the information you must provide when opening a business ITAM account on behalf of a legal entity.
2. Who must complete the certification?
The certification must be completed by the person opening a business ITAM account on behalf of a legal entity. For purposes of this disclosure, a legal entity includes:
- A corporation;
- A limited liability company (LLC);
- A general or limited partnership;
- Any other entity created by a filing of a public document with a Secretary of State or similar office (in the United States or in a foreign country);
- Any similar business entity formed in the United States or in a foreign country.
For the purpose of these Terms, governments, public-sector bodies, and state-owned enterprises are also treated as legal entities and may be subject to additional disclosure requirements.
"Legal entity" does not include sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf. Different (but equivalent) verification applies to those customer types.
3. What information is required?
You must provide identifying information for the following individuals (the "beneficial owners"):
- Each individual, if any, who owns directly or indirectly 10 percent or more of the equity interests of the legal entity (for example, each natural person who owns 10% or more of the shares of a corporation, or 10% or more of the membership interests of an LLC); and
- One individual with significant responsibility for managing the legal entity (for example, a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, Treasurer, or any other individual who regularly performs similar functions).
The number of individuals who satisfy the definition of "beneficial owner" depends on the entity's ownership structure. Under the equity-ownership prong, you must identify every natural person who, directly or indirectly, owns 10% or more of the entity. Under the management prong, you must identify one individual with significant responsibility for managing the entity. The same individual may be identified under both prongs (for example, the President of Acme, Inc. who also holds a 12 percent equity interest).
4. Data fields collected
For each beneficial owner identified, you will provide:
- Full legal name;
- Date of birth;
- Residential or business street address;
- For U.S. persons: Social Security number;
- For non-U.S. persons: passport number and country of issuance, or other similar identification number from a government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard.
We may also ask to see a copy of a driver's license, passport, or other identifying document for each beneficial owner listed.
5. Your certification
The individual opening the account on behalf of the legal entity must certify, to the best of their knowledge, that the information provided is complete and correct. This certification must be made in writing (including electronically through the ITAM application) and is subject to verification by us using documentary or non-documentary methods.
Knowingly providing false information may result in civil or criminal penalties under federal law, including 18 U.S.C. § 1001.
6. Updating beneficial ownership information
You are responsible for notifying us of any changes to the certified beneficial-ownership information of the legal-entity customer. Notice should be provided to us as soon as practical upon a change to the beneficial-ownership information, in a form and manner acceptable to us, including through the ITAM application.
7. Ongoing customer due diligence
In addition to obtaining beneficial-ownership information at account opening, the FinCEN CDD Rule requires us to conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. We may, from time to time, request additional or updated information from you in connection with this ongoing monitoring.
8. Contact us
PayServices Bank
BSA / AML Compliance
950 W Bannock Street, Suite 1100
Boise, Idaho 83702-6140
United States
info@payservices.com